Nine says its radio revenues are projected to grow this quarter

Pictured: Nine's new CEO Mike Sneesby

Despite a decline in industry-wide radio revenues of 4% during the third quarter, Nine is expecting strong growth as the sector continues to recover from the pandemic.

In a presentation for the Macquarie Australia Conference today, Nine told the bank it estimates June quarter metro free-to-air (FTA) television and radio revenues will grow by 50%.

March quarter metro FTA market revenue was up 6% on the same three months last year, with Nine’s share more than 41%. Radio was down 4%, with Nine’s share up 1.3%.

Pictured: Nine Trading Update on May 4, 2021 / Source: ASX

Nine announced financial results for the six months to December 31, 2020, in February with its chief financial officer, Maria Phillips, calling the results for its radio division “disappointing”.

The media conglomerate posted profits of $182 million, up 79% from the prior corresponding period, on revenue of $1.2 billion (down 2%). The group EBITDA (earnings before interest, tax, depreciation and amortisation) was $355 million, up 42%.

Its radio operation stood out from its other broadcast and digital operations, however, with revenue for the six-month period down 24% to $44.0 million from $57.6 million for the same period in 2019. EBITDA was down 62% from $7.6 million to $2.9 million.

Nine’s now-former CEO Hugh Marks said the company has performed incredibly well throughout a period of heightened volatility, and had emerged in a very strong position.

Marks was replaced by the CEO of its streaming service Stan, Mike Sneesby, who took over in April after Marks announced he was stepping down in November last year when it emerged he had been in a relationship with a key Nine executive.